Puregold Price Club Inc., one of the country’s largest grocery retailers led by businessman Lucio Co, announced a capital expenditure budget of P6.35 billion this year, with a strategic focus on expanding its S&R brand, comprising warehouse clubs and quick-service restaurants.
The spending plan marks a 21.6 percent decline from last year’s P8.1 billion, signaling a more targeted investment approach. Of the total, P3 billion will fund the construction of three new S&R warehouse clubs and 14 S&R restaurants, reflecting Puregold’s increasing reliance on the high-margin S&R format to drive profitability.
Another P1.9 billion is earmarked for 30 new Puregold stores across the country. The remainder includes P1.25 billionfor maintenance capex, solar projects, and IT upgrades, and P200 million for logistics infrastructure.
The company expects consolidated revenue growth of up to 8 percent this year, with gross margins projected at 16.5 percent for Puregold stores and a higher 22.5 percent for S&R—underpinning the strategic emphasis on the latter.
The announcement follows a record-breaking performance in 2023, with net income up 21 percent to P10.4 billion from P8.6 billion in 2022. Revenue climbed 10 percent to P219.17 billion, driven by stronger same-store sales—4.5 percent at Puregoldand 6.4 percent at S&R, aided by increased customer traffic and basket size.
Puregold president Ferdinand Vincent Co attributed the company’s strong showing to “sustainable growth and proven profitability of our core business,” despite a challenging market environment.
As of year-end 2024, the company operates 602 stores nationwide, including 511 Puregold branches, 29 S&R warehouse clubs, and 62 S&R New York Style quick-service restaurants.
